Activision Announces Preliminary Record Fiscal 2007 Net Revenues

Paul Sinclair • May 8, 2007 • Comments ()

Activision, have announced record preliminary net revenues for the fourth quarter and fiscal year ended March 31, 2007. The company's net revenues should be considered preliminary until Activision files its quarterly reports for the second and third fiscal 2007 quarters and annual report for the fiscal year 2007.

For the fiscal year, Activision expects to report record net revenues of $1.51 billion, as compared to net revenues of $1.47 billion for the fiscal year ended March 31, 2006 and the company's outlook of $1.40 billion. These results mark 15 consecutive years of revenue growth for Activision and were driven by better-than-expected consumer response to the company's titles and the strength of the software market overall.

Robert Kotick, Chairman and CEO, commented, "Fiscal 2007 net revenues are expected to be the highest in Activision's history. Our results were driven by our proven properties Call of Duty 3, Marvel: Ultimate Alliance and Tony Hawk's Project 8; our successful integration of the RedOctane business and expansion of the Guitar Hero franchise globally; our early leadership position on the next-gen consoles; and the strength of our distribution business. We ended fiscal 2007 as the #2 U.S. third-party publisher, grew our market share in the U.S. and had two of the top 10 best selling U.S. titles, according to The NPD Group."

For the fiscal fourth quarter, the company expects to report record net revenues of $313 million, as compared to $188 million for the fourth quarter of last fiscal year and the company's prior outlook of $200 million. The company's fiscal fourth quarter revenues were fueled by Guitar Hero II and Call of Duty 3, as well as better-than-expected performance of the company's distribution business due to the European launch of the PLAYSTATION 3.